Publish date:

Cramer's Mad Money Recap: Home Depot, Moderna, Pfizer

Jim Cramer says money never really leaves the stock market casino, it just moves to other tables. He looks at the pandemic winners investors are shifting back to.
Author:

Don't get too complacent in your negativity, Jim Cramer told his Mad Money viewers Tuesday. Cramer said his bullish stance remains intact, even though Tuesday's news proved that things are a little less positive than they were Monday.

The day started off with seemingly bad news from Home Depot  (HD) - Get Home Depot, Inc. (HD) Report, which saw same-store sales that were weaker than expected. The retailer said that it's seeing slowing consumer demand, news which sent shares down 4.2% by the close.

Home Depot's earnings were followed by weak July retail sales numbers, which dipped 1.1%. Add to that softening auto sales, and Cramer said it's clear that our economic expansion may be taking a pause.

Over on Real Money, Cramer saws through the Home Depot reaction: "We just got hit with a two-by-four, but in your daze, don't confuse this retailer's report with the entire market and economy," he writes. Read his assessment of the current market action because, as he says, "someone has to, and it might as well be me."

Cramer reminded viewers that while Home Depot's same-store sales didn't match that of a year ago, during the height of the pandemic, the company still met its revenue and earnings numbers. Cramer also added that money never leaves the stock market casino, it just moves to other tables. That's why shares of Moderna  (MRNA) - Get Moderna, Inc. Report and Pfizer  (PFE) - Get Pfizer Inc. Report both rallied, up 7.4% and 3% respectively. It's also why we saw gains in everything from Regeneron  (REGN) - Get Regeneron Pharmaceuticals, Inc. Report to Domino's Pizza  (DPZ) - Get Domino's Pizza, Inc. Report, as investors shifted back to the pandemic winners.

Cramer and the AAP team are looking at everything from earnings and politics to the Federal Reserve. Find out what they're telling their investment club members and get in on the conversation with a free trial subscription to Action Alerts Plus.

Executive Decision: Roblox

In his first "Executive Decision" segment, Cramer spoke with David Baszucki, founder and CEO of the online gaming company Roblox  (RBLX) - Get Roblox Report, which on Monday reported mixed results for the quarter

Baszucki explained that Roblox has come a long way over the past year. He recalled that a year ago, the Roblox community was locked away at home but today, a year later, the world is reopening and Roblox is still seeing growth in its daily active users. That surge led to a 112% surge in revenues from last year. 

Roblox is about a lot more than just gaming, Baszucki continued. They create digital experiences that can include music, items and more. That's why the Roblox version of the popular musical "In The Heights" is so popular. People can experience the movie and the locations up close with their friends. 

Baszucki concluded by noting that Roblox has been growing for the past 15 years, and while the pandemic brought their community together like never before, he's excited to see what the next 15 years will bring. 

Get more trading strategies and investing insights from the contributors on Real Money.

Executive Decision: Krispy Kreme 

For his second "Executive Decision" segment, Cramer also spoke with Mike Tattersfield, president and CEO of Krispy Kreme  (DNUT) - Get Krispy Kreme Report, the doughnut chain that just posted a penny-a-share earnings miss, but reaffirmed their year-end guidance. Shares fell 4% on the news. 

Tattersfield said despite the 1-cent earnings miss, Krispy Kreme had its best second quarter in the company's history. Those strong results were led by the company's global footprint and its transition to an omni-channel model. 

Krispy Kreme's business model is simple, Tattersfield explained, deliver fresh doughnuts every day to where the customers are. There was something missing in their former wholesale model, he said. Now, doughnuts are made and delivered fresh every day. 

Tattersfield also touted their vaccination reward program. He said anyone that's vaccinated can show their card at any Krispy Kreme and get one free doughnut every day throughout the rest of the year. The company provided 30 million free doughnuts to healthcare workers and first responders last year, Tattersfield said, and now this year they're doing their part to promote the value of vaccines. 

Executive Decision: UWM Holdings

For his final "Executive Decision" segment, Cramer checked in Mat Ishbia, chairman and CEO of UWM Holdings  (UWMC) - Get UWM Holdings Corp. Report, the loan originator that also posted mixed results. UWM saw closed loan volume soar 90% over a year ago, but also saw their gross margins collapse. Shares of UWM currently yield 5.5%. 

Ishbia said he's very happy with their quarterly results. UWM exceeded their second quarter guidance. As for those falling gross margins, he said "we knew this would happen" and engineered the move lower.

TheStreet Recommends

UWM is the low-cost leader, Ishbia added, which means the company can afford to lower prices in order to gain market share. That's exactly what happened this quarter. 

Ishbia is not afraid to mention the competition either. He said Rocket Companies  (RKT) - Get Rocket Cos. Inc. Report is a great company and it's only because they're such a good competitor that UWM is forced to become the best version of themselves they can be. If you think UWM is making a lot of money now when interest rates are super low, just wait until rates start rising next year, he said. 

Change of Fortune for Regeneron

In his No-Huddle Offense segment, Cramer said he called out Florida's Republican Gov. Ron DeSantis when he banned vaccine mandates and helped crush the stock of Norwegian Cruise Lines  (NCLH) - Get Norwegian Cruise Line Holdings Ltd. Report earlier this year. Fortunately, Norwegian took the governor to court and won an injunction against DeSantis' unwise policies.

However, Cramer said he's seen DeSantis promote  Regeneron, makers of the monoclonal antibody treatment for COVID. Ideally, we would have preferred to get everybody vaccinated, Cramer explained, but since we didn't achieve herd immunity, testing and treatments are the next best thing and there's none better than Regeneron.

DeSantis is opening clinics to help spur the use of Regeneron's fast-acting treatments, and he's even calling out Regeneron by name. The company has millions of doses ready to go and now has a big market of patients in need.

Lightning Round

Here's what Jim Cramer had to say about some of the stocks that callers offered up during the "Mad Money Lightning Round" Tuesday evening:

STAAR Surgical  (STAA) - Get STAAR Surgical Company Report: "That's a stock that's really working here. They do a great job."

Digital Turbine  (APPS) - Get Digital Turbine, Inc. Report: "There are just too many companies in this business. You need to stay away."

Infrastructure & Energy Alternatives  (IEA) - Get Infrastructure & Energy Alternatives, Inc. Report: "Can we just buy Tesla  (TSLA) - Get Tesla Inc Report instead? Buy some every time it goes down."

Danimer Scientific DNMR: "The plastic problem will be solved by companies like Eastman Chemical  (EMN) - Get Eastman Chemical Company Report that have scale."

Amazon  (AMZN) - Get Amazon.com, Inc. Report: "Amazon is down for the year but you should join me in riding this one out."

WM Technology MAPS: "We need to take a break from the cannabis stocks. There are too many of them. Stay away.

The Lion Electric Company LEV: "This is one of my favorites in this group."

Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener.

To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.

To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here.

At the time of publication, Cramer's Action Alerts PLUS had a position in AMZN.